What is the difference between a pure discount bond and an ordinary bond that sells at a discount?
Answer to relevant QuestionsExplain who benefits from the option to convert a bond into shares of common stock, and who benefits from the option to call a bond. Explain the meaning of the term interest rate risk. Why are common stockholders viewed as residual owners? Describe the role of the underwriting syndicate in a firm-commitment offering. In Figure, why does the line decline steeply at first and then flatten out?
Post your question